Teapioca Lounge Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

33
+
65%
65%
Investment required

?

$268,000 - $427,000
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$0
Royalty fees

?

5.00%
+
2% + $1,051 per month
Operating Profit

?

n.a.

Pro
Franchisees

?

33
+
65%
65%
Investment required

?

$268,000 - $427,000
Franchise fee

?

$0
Royalty fees

?

5.00%
+
2% + $1,051 per month
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

Teapioca Lounge: Blending Tradition and Innovation in Bubble Tea

Teapioca Lounge is a distinctive beverage franchise that seamlessly merges the rich traditions of Asian tea culture with the dynamic ambiance of a modern American café. Founded in 2010 in Austin, Texas, the brand has cultivated a loyal following by offering a diverse menu that includes bubble teas, smoothies, brewed teas, and coffee-based drinks.

With its headquarters remaining in Austin, Teapioca Lounge began franchising in 2015, inviting entrepreneurs to join its mission of delivering high-quality, customizable beverages in a welcoming environment.

The franchise's menu is a testament to its commitment to variety and quality, featuring an array of options that cater to a wide range of tastes. From classic milk teas and fruit-infused blends to specialty smoothies and espresso-based drinks, Teapioca Lounge ensures that every customer finds a beverage to enjoy.

What truly differentiates Teapioca Lounge from its competitors is its unique fusion of cultural authenticity and contemporary design. The lounges are designed to be more than just places to grab a drink; they are community hubs where customers can relax, socialize, and experience a slice of Asian tea culture in a modern setting.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Fees $0 to $0
Travel and Living Expenses While Training $3,200 to $10,500
Rent / Real Estate Deposit $7,400 to $25,000
Real Estate Site Selection $0 to $0
Utility and Miscellaneous Security Deposits $300 to $1,800
Leasehold Improvements $143,000 to $208,000
Furniture, Fixtures, and Equipment $45,000 to $55,000
Opening Inventory $30,000 to $45,000
Office Supplies and Other Opening Items $500 to $1,000
Grand Opening $10,000 to $15,000
Insurance $750 to $900
Signage $5,000 to $10,000
Licensing and Permits $500 to $1,000
Uniforms $500 to $1,000
Legal / Accounting $1,500 to $3,000
Additional Funds (Three Months) $20,000 to $50,000
Total (Teapioca Franchise – Single Unit) $267,650 to $427,200

Franchise Disclosure Document

Interested in
Teapioca Lounge
?

Signup and download one FDD for free

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
We just sent you a 6-digit code.
Check your inbox and paste the code below.
Already have an account? Login here
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you for signing up
Complete your upgrade now
Signup successful!
Download the FDD
Complete your upgrade

Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

33

+
65%
65%
No growth
New

$0

$268,000

-

$427,000

n.a.

$0

Pro

n.a.

Pro

n.a.

Pro

Food & Beverage

Training

Teapioca provides a multi-tiered training framework to ensure franchisees are well-prepared for operating their business. This structured approach includes both mandatory and optional training initiatives aimed at operational efficiency and brand consistency. The main programs include:

  1. Initial Training Program
    Franchisees and their designated managers are required to undergo an initial training session. While Teapioca does not charge tuition or training fees for this session, franchisees are responsible for covering all travel and living expenses. The training must be completed before the business opens and includes instruction on store operations and product preparation.
  2. Ongoing Update Training
    Teapioca provides ongoing training sessions annually to ensure franchisees stay current with operational updates and brand standards. Attendance is required for one session per year, which lasts up to three days, not including any annual convention. While the training itself is free, franchisees must bear all associated travel and lodging costs.
  3. Annual Convention Training
    Franchisees are also required to attend an annual training session during Teapioca's convention. The first two attendees are covered for the entrance fee, but hotel and airfare are the franchisee’s responsibility. Additional attendees are charged a set fee, and failure to attend results in a penalty.
  4. Temporary Management Assistance
    In the event of the owner's death or incapacity, Teapioca may temporarily manage the franchise for up to 60 days. During this time, a daily management fee and reimbursement of expenses apply, offering operational continuity while ownership transitions.

Territory Protection

Teapioca does not offer traditional exclusive territory protection to its franchisees. While franchisees are required to submit three proposed locations for approval and must adhere to Teapioca’s location selection criteria, these approvals do not guarantee territorial exclusivity.

The franchise agreement does not restrict Teapioca from approving other franchises or company-owned locations nearby. However, franchisees may gain a degree of practical protection through the careful site selection and demographic analysis conducted by Teapioca’s approved vendors.

These assessments consider factors like proximity to high-traffic destinations, parking availability, and presence of competing businesses. Even with this analysis, Teapioca reserves the right to approve multiple units in overlapping market areas, leaving room for potential intra-brand competition.

Number of units

2023
Franchised units

20

26

33

Company-owned units

0

0

0

Total units

20

26

33

Competitors

Qargo Coffee

Investment required
$155,000
-
$299,000
Franchisees
2
+
n.a.
n.a.

Happy Lemon

Investment required
$298,000
-
$587,000
Franchisees
106
+
16%
16%

Sweetwaters Coffee & Tea

Investment required
$473,000
-
$765,000
Franchisees
34
+
0%
0%

Teaspoon

Investment required
$245,000
-
$548,000
Franchisees
37
+
164%
164%

Access the most comprehensive franchise database

For franchisees

Find the best franchises to invest into

For franchisors

Compare your brand to competitors

Get unlimited access to:
2,145 franchises data
Number of locations
Franchise fees
Total investment

?

Download unlimited FDDs
Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit metrics

?

Upgrade to Pro

Access the most comprehensive franchise database

For franchisees

Find the best franchises to invest into

For franchisors

Compare your brand to competitors

Upgrade to Pro
$180 / year
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
Advanced filtering and sorting
Watchlist

?

Priority support

?

Upgrade to Pro
Signup successful!
Complete your upgrade

A comprehensive and transparent look at franchising finances. The inclusion of profit margins and disclosure documents offers insights you can’t find elsewhere. Essential for anyone considering a franchise investment.

Darren M.

Franchisee

Been waiting for years for this. All the most important franchises and their latest Franchise Documents to download. The team also updates the franchises very quickly.

Emily V.

Franchisee